Letting out a property as a way of generating passive income once appealed to me. But I came to realise that the stock market would always be the best option for me personally to make money on the side. 

Great in theory

Now, don’t get me wrong; the arguments for buy-to-let look pretty compelling on paper. The idea of someone paying my mortgage combined with the gradual (or perhaps not so gradual) rise in the property’s value is undeniably attractive.

The reality, of course, would be a lot different for me. The average cost of a house in the UK hit £255,000 at the end of December, according to Nationwide. That’s all well and good were I already invested. But becoming a landlord from scratch means I’d need a big deposit. The prospect of rising interest rates isn’t exactly appealing either. 

I also don’t feel I have time to find tenants who will consistently pay their rent (and not prove a nuisance), nor to keep the flat or house in good working order throughout the time I own it and abide by all the regulations imposed on landlords. So, I’m leaving buy-to-let to others.

A better source of passive income

To be frank, investing via the stock market appeals to me as it involves a lot less fuss. Assuming I’m comfortable with the sort of price volatility we’re experiencing right now, I simply need to buy and hold investments that deposit money in my account on a regular basis. In other words, I’m looking for shares and funds that pay dividends. And there’s no shortage of options that do just this. Given that I did once consider buy-to-let, however, it’s worth highlighting that some will allow me my property fix.

Real Estate Investment Trusts (or REITS) are companies that invest in and manage property portfolios. These could include residential homes, warehouses, self-storage facilities, healthcare buildings, office space and retail stores. The choice is staggering. And all allow me to become a landlord just through buying some shares. 

Another great thing about holding REITS (actually, any dividend stock) is that I don’t need to pay any tax on the passive income if I keep them in a Stocks and Shares ISA. This gives me more cash to reinvest and grow, assuming that’s what I choose to do. And over the long term, equities have consistently been the best-performing asset I can own.

Safety in numbers

Of course, it’s worth making it very clear that no passive income stream is ever guaranteed. A company may decide to suspend paying dividends if earnings hit a sticky patch. It may also refrain from increasing the payouts if it needs to pay for things that will allow the business to grow. 

One way of protecting myself from this eventuality is to hold a diversified bunch of shares and funds. This way, the pain caused by one company cutting its dividend can be mitigated by others perhaps increasing theirs. 

Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

£500 at a single time might not sound like a whole lot to start building my investment portfolio with, but over time it amounts to a lot. In a single year, just by saving £500 a month, I have an amount of £6,000 to invest. And if I start buying stocks every single month, then chances are that I could end up with an even higher amount by the end of the year. 

Long-term growth stocks

The next question though, is this: how should I ensure the best returns on my investment portfolio? People can have varied investing goals, but if I did not have a clear objective to start with, I would just stash away £500 every single month and buy long-term growth stocks with it. The good news is that the UK’s markets offer plenty of choices to buy such shares. Many FTSE 100 companies, for instance, have given investors great returns over time. And they could continue to do so. 

Building my investment portfolio for growth

Since I tend to have a top-down approach to investing, I would first consider the sectors most likely to do well. As an example, one that I think has a great long-term future is e-commerce. And FTSE 100 constituents alone offer much choice across this segments. There are retailers selling online, packaging providers, warehousers and even delivery services providers. 

Another long-term set of stocks for me to consider are green energy shares. FTSE 100 utilities that focus on harnessing renewable energy are among these. In fact, I am also looking carefully at the now oil biggies’ pivot towards clean energy sources. Also, miners that are transitioning from fossil fuels like coal and producing metals that will be in demand as electric vehicles replace cars run on petrol at present. 

Dividend stocks to consider

I would consider stocks that could pay lucrative dividends in the very long-term too. These would help me build up a retirement income, and who knows, might even help me retire earlier than I had planned! To this extent, I would consider buying stocks that consistently paid dividends over the years and have displayed financial health over time as well.

Some of the best dividend stocks to hold over time are not always the ones that have the biggest yields, but are also the ones that have grown their dividends the most over time. Of course, at any point in time, I do not know if the companies will continue to pay dividends in the future as well. But it is a good place to start!

Foolish final thoughts

I think that with a blend of long-term growth stocks as well as solid dividend-paying stocks, I could end up quite a bit ahead. Even without investing, my £500 a month becomes £30,000 over five years. And with rising stock markets and sustained dividends, my gains could be far bigger. 

Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I’m not enjoying the amount of red I’m seeing on my screen right now. Then again, I’ve been around the block enough times to know that stock market crashes like the one we’re experiencing are temporary.

Instead of hiding behind the sofa, I’ve been looking for great UK shares to snap up. Here are three I’d be keen to buy if things get really scary. 

CVS Group

Many investors (including myself) are drawn to invest in glitzy themes such as electric cars and robotics. That said, I think there’s one fantastic part of the market that’s easy to overlook, namely pet care. This is why I’m following the movements of CVS Group (LSE: CVSG) very closely. 

CVS provides veterinary services and, based on Thursday’s trading update, is doing very well indeed. Trading over the second half of 2021 was “comfortably in line with full-year expectations” with revenue climbing 11.4% on the previous year.

The mid-cap was also bullish on its outlook, saying that demand remains buoyant due to “increased ownership” and “the humanisation of pets“. 

The shares have fallen almost 11% in 2022, at the time of writing, but still change hands for almost 24 times earnings. That’s a little more than I’d like to pay, hence why I’m keeping my powder dry for now. If the sell-off continues however, I’ll be buying the stock quicker than a cockapoo chases a squirrel.

Bytes Technology

Another UK growth stock I’d have no issue in taking a nibble at eventually is Bytes Technology (LSE: BYIT).

Last year proved to be a hugely successful one for the software, security, and cloud services specialist. Back in October, it revealed increases of 13.7% and 19% in revenue and operating profit respectively in the six months to the end of August. 

As more corporate clients recognise the importance of updating their IT systems, I don’t think this kind of momentum is in danger of reversing soon.   

Stock in Bytes has declined 21% in value so far this year. Like CVS Group however, they still aren’t cheap enough to get me buying just yet (31 times earnings).

Then again, this is not the sort of business that will likely trade on a ‘cheap’ valuation. Returns on capital employed — what a company gets back for the money it puts in — are some of the highest I’ve been able to find.

I think shares will only fall so far before they rebound strongly.

Treatt

A final growth stock that takes my fancy is ingredients supplier Treatt (LSE: TET). This is another company enjoying robust trading. On Friday, it reported making “a good start” to its new financial year.

Notwithstanding this, it did caution investors that pre-tax profit would likely revert to being more weighted to the second half. This is due to the seasonality of drinks consumption in the Northern Hemisphere. 

Since any business needs to keep moving and raising its game, I’m encouraged by Treatt’s ongoing R&D spend. New headquarters are also expected to give the company “substantial extra capacity” to continue growing in the years ahead. As a Foolish investor, that’s the sort of long-term focus I’m drawn to.

Unfortunately, the valuation — an eye-watering 38 times earnings — is still too rich for me.  So while Treatt’s shares are already down 14% this year, I’d prefer to snap up this growth stock when/if markets really start to panic.

Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Treatt. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The sort of share picking success enjoyed by investor Warren Buffett does not just come about by accident. Over many years, Buffett has refined his investing strategy to try and improve his results.

Here are three simple but important rules he follows in his investment strategy. I believe following them can boost the performance of my own portfolio.

1. Focus on investment not speculation or trading

When it comes to moving in and out of shares, Buffett’s position is clear. He says, “Our favourite holding period is forever”. In other words, Buffett is happiest when he buys a share and never sells it. Some of the core holdings of his Berkshire Hathaway portfolio have been in it for decades, including household names like Coca-Cola and American Express.

I think a lot of people misunderstand this simple but profound insight. Buffett is not saying that he never sells shares. In fact, he has sold many shares over his career and continues to do so. Buffett clearly pays attention to how companies he owns are doing. If the facts make him change his mind about an investment thesis, he will offload the shares. He did that several years ago with IBM.

Instead, what Warren Buffett is saying here is that as an investor he is on the lookout for companies with such strong future earnings potential that, in an ideal world, he would be happy to own them indefinitely. When I compare that to some of my own moves as an investor, I can immediately appreciate the benefit of Buffett’s analytical framework. Often it is tempting to make marginal investments. Those might be companies whose businesses clearly have a shelf life but who look like they have a good few years of profit left in them yet. Clearly such a way of thinking would not meet the standard of Buffett’s approach. Put another way, Buffett says that if someone does not feel comfortable with the idea of owning a share for 10 years, they should not even entertain owning it for 10 minutes.

Clearly, Buffett is not a trader or a short-term speculator looking to make a fast buck. Instead he is trying to buy companies based on his assessment of their long-term potential.

How can this first Buffett investing rule improve my own investment performance? I think it is a good filter to apply to companies I am considering for my portfolio. Before buying a share, can I imagine holding it forever if its prospects remain the way they look now, or do I already have one eye on the exit? If I have any reason to imagine selling a share even before I have purchased it, it might mean it is not the sort of high-quality company that forms the basis of Buffett’s investment success.

2. Do fewer things, but on a big scale

An interesting aspect of Buffett’s portfolio is that it is relatively small in terms of the number of companies he owns. As one would expect from such a seasoned investor, he is careful to reduce his risk by diversifying across different companies and industries. But overall, Buffett’s share portfolio typically contains tens not hundreds of companies.

That is not an accident. It reflects a second investing rule Warren Buffett follows. That is to wait for what he regards as really promising opportunities and then to pile into them in a big way. In fact, Buffett goes even further than that, saying, “You only have to do a very few things right in your life so long as you don’t do too many things wrong”. This focus on the quality of decision making not quantity sets him apart from many investors.

This is not just talk: Buffett’s behaviour echoes the same points. He has spent many years of his career being criticised for not buying companies when his company has had vast amounts of spare cash on its balance sheet. But such criticism is water off a duck’s back. In the long run, Buffett reckons that the returns one receives from a great company will be exponentially better than those from a merely good company. That is why he is happy to wait for the few genuinely great opportunities that come along, even if that takes years.

When he does find one, he tends to invest large amounts. If an investment opportunity really is promising, on Buffett’s logic, it makes sense to devote substantial funds to it, in the hope of getting a big reward. That is an investing rule I can apply to my own portfolio.

3. Warren Buffett values sleeping soundly

Not all people in their nineties like Buffett can rely on a good night’s sleep. But he has been honing the skill for decades. In fact, it forms the core of the third Buffett investing rule.

Here is Warren Buffett on how he thinks about making investments that are potentially lucrative but also carry worrying risks: “When forced to choose, I will not trade even a night’s sleep for the chance of extra profits”.

If anything, I think this investing rule might actually be even more relevant for a private investor like me than for a professional like Buffett who has billions of dollars to his name. Buffett could sustain losses in his portfolio that would hardly dent its value, but would be big enough to cause huge problems for an investor of smaller means.

Whether it is shunning risky companies, not concentrating too much of his wealth in a single opportunity, or investing with money he cannot afford to lose, Buffett simply refuses to make any investment decision that would keep him up at night with worry. That is consistent with him being a long-term investor not a trader or speculator. It is one more valuable investing rule from Warren Buffett I believe I can profitably apply to my own decisions when buying shares for my portfolio.

Christopher Ruane has no position in any of the shares mentioned. American Express is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I believe these UK shares could be two of the best cheap stocks to buy today. Allow me to explain why.

A cyber security star

Tech stocks that help companies, governments and other organisations protect themselves against cybercrime look set to thrive this decade. The growth of homeworking and the e-commerce boom due to Covid-19 has supercharged the number of cyber attacks over the past couple of years.

The tense geopolitical landscape threatens to worsen the situation further with state-sponsored cyber attacks becoming the norm.

Comments from the National Cyber Security Centre (NCSC) illustrate the scale of the problem. The centre has just urged UK organisations “to bolster their cyber security resilience in response to the malicious cyber incidents in and around Ukraine”.

The NCSC says that recent cyber attacks in Ukraine “are similar to a pattern of Russian behaviour seen before in previous situations,” prompting this fresh warning.

As both large- and small-scale cyber attacks become commonplace, increased investment is required in software to repel intrusions. This is why I’m considering investing in NCC Group (LSE: NCC).

This UK share provides a wide range of services that help thwart cyber criminals. From carrying out security assessments and providing training to producing software escrow agreements, NCC has its fingers in a number of pies.

City analysts think NCC’s earnings will rise 25% in the financial year to May. This leaves the company trading on a forward price-to-earnings growth (PEG) ratio of 0.7. A reading below 1 suggests that stock could be undervalued.

Sure, NCC could suffer untold reputational damage if a failure of its security systems occurs. Given the nature of its business such an event could prove catastrophic for future sales. However, NCC has been around for three decades and so clearly has a great track record on this front. This gives me extra confidence as a potential investor.

A cheap stock for the shipping boom

I’m also considering buying shares in Braemar Shipping Services (LSE: BMS) today. The world’s shortage of vessels is sending charter rates through the roof and shipbroking firms like this are reaping the rewards. Braemar also provides financial and logistics services to the global shipping industry.

Shipping rates are ballooning because of a tightening supply of vessels. The Covid-19 economic rebound is supercharging demand for ships of all classes. At the same time, a shortage of orders for new vessels in recent years has left a paucity of available seaborne craft.

Some analysts are predicting that “the average cost of shipping this year will be higher than ever before” as the crunch goes on. Braemar plans to double the size of its shipbroking business to exploit these favourable conditions.

City brokers are expecting earnings at Braemar to shoot 22% higher in this financial year (to February). This leaves the shipping giant trading on a forward PEG ratio of 0.5.

Earnings at the business could suffer if the economic recovery runs out of steam. But from a long-term perspective, I think this cheap stock remains a top buy.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended NCC. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

There is growing speculation that a stock market crash could grip the market at some point in the near future.

Indeed, there is already evidence of a crash, or bear market, in some sections of the market. Analysts generally define a bear market as a 20% drop from the peak. Some shares have already printed a 20% decline, and then some, over the past couple of weeks.

Some of the market’s highest-flying growth stocks are down 70% or more from their 2021 highs in the US. 

Stock market crash outlook 

Analysts are warning that the combination of higher interest rates and rising inflation could combine to drive a stock market crash in 2022. 

But I am not taking any notice of this forecast. Analysts have been trying to scare investors into action since the financial crisis. While there have been some bumps along the way, overall, stock markets have trended higher over the past 12 years. 

This is why I am not particularly worried about warnings of an imminent crash. It is impossible to predict what will happen to the stock market over the next year or so with any accuracy.

Throughout longer periods, it does become easier to analyse market potential. Over the long run, equity prices should track underlying fundamental performance. Therefore, if the global economy expands over the next decade, equity prices should match this growth. 

As such, I am focusing on the long-term outlook for the global economy, rather than short-term market forecasts. These are almost always wrong. 

Top-quality businesses 

Instead of trying to time the market and predict a stock market crash, I am focusing on acquiring high-quality shares. Companies that will be able to capitalise on global economic growth, thanks to their competitive advantages and international footprint. 

There are a couple of businesses that really stand out. Drinks giant Diageo has a deep international footprint and portfolio of globally recognised brands. 

Meanwhile, the global catering group Compass provides an essential service. It helps other businesses cater for staff and events. As long as humans continue to need food, I think demand for this firm’s services will persist. 

And then there is distributor Bunzl. Distribution is a low margin business, where are economies of scale are required for success. Bunzl has substantial economies of scale.

Distributing items such as takeaway cutlery and cleaning equipment, the company provides an essential service for many other businesses. No matter what the future holds for the stock market, I think the demand for this group’s offering will continue to expand. 

Continue to prosper

I have picked out these companies for their qualities but, unfortunately, they are not immune to general business risks. Rising inflation pressures, competitive forces, and additional regulations are all factors that could have an impact on their growth rates. Another challenge they could face is rising interest rates. Rising rates may increase their cost of debt. 

Despite these headwinds, I would acquire all three of these organisations for my portfolio. I think they should continue to prosper even if there is a stock market crash in the next week. With robust operating models, I believe these companies have the potential to pull through whatever the world throws at them. 

Rupert Hargreaves owns Diageo. The Motley Fool UK has recommended Bunzl, Compass Group, and Diageo. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I’d like to earn some money on the side without having to work for it. I reckon I can set up a plan to earn an extra £3,000 in passive income this year.

So how would I do it and how much would I need to get started? Those are the answers I hope to answer.  Let’s get started.

Passive income plan

Firstly, my plan involves investing in dividend shares. These are shares in companies that pay a portion of profits to shareholders. It’s important to note that dividend payments can vary, company by company. I’d also note that not all companies pay dividends either.

The level of dividend that a business pays relative to its share price is measured by the term dividend yield. On average, FTSE 100 shares pay a dividend yield of 3.4%.

But my plan doesn’t involve earning just the average yield. I reckon it’s possible to earn a much more lucrative dividend yield with some extra research and planning. By carefully selecting a variety of income shares, I’d say it’s possible to realistically earn around 6% in dividends every year.

Now, based on this assumption, I calculate I could earn £3,000 in passive income by investing £50,000. But what if I don’t have that amount of money to start? Many years ago, I first started investing with a more modest sum. But by saving I was able to frequently add to my pot. And over time, history shows that investments tend to grow. Yes, there are ups and downs, but the general trend is higher over many years.

I’d note that it’s possible to start earning some passive income with as little as £100. Yes, the dividend payment on such an investment is unlikely to amount to much, but I reckon it’s important I start somewhere and grow the pot with savings.

Getting started

First, I’d open a Stocks and Shares ISA and fund the account. Next, I’d go about searching for the best dividend shares. I could consider shares with the highest dividend yields. But a word of warning. Particularly high dividends might not be sustainable. I’d stay away from any company offering more than 10%. For me, the sweet spot is 4-8%.

Rather than picking just one or two shares, I’d want to select a few companies from different sectors. This way I can diversify and spread my risk. I wouldn’t want to be putting all of my eggs in one basket.

Top dividend shares

Which shares should I buy right now? Currently, I’d look into Phoenix Group, Imperial Brands, and BP. They all fit my sweet spot dividend yield criteria. I also like that all three picks are showing signs of earnings growth. Lastly, they have a reasonable track record in paying out dividends. I’d say this last point is an important one when looking for passive income. I’d prefer reliable payers to earn reliable passive income over time.

By adding funds to my pot, and continuing to add to my holdings of the top dividend shares, I reckon I should be able to build a nice passive income stream. Then it’ll just be a question of which fun activities to spend it on. Or I guess I could be less fun and reinvest it instead.

Harshil Patel has no position in any of the shares mentioned. The Motley Fool UK has recommended Imperial Brands. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Warren Buffett is widely considered to be the best investor of all time. Over the past seven decades, he has created a conglomerate with nearly $1trn in assets and hundreds of thousands of employees worldwide. 

A key component of his strategy is buying stakes in high-quality businesses. These can be public as well as private enterprises. Unfortunately, I cannot invest alongside the ‘Oracle of Omaha’ in his private businesses. However, I can invest alongside the billionaire in public stocks. 

And there is one Buffett stock I would buy for my portfolio with £500 today. 

A leading company 

Not many companies in the UK are exposed to the fast-growing cloud computing industry. There are a handful of options, but many lack the size and scale to compete internationally. 

On the other hand, New York-listed Snowflake (NYSE: SNOW) is rapidly becoming a global force to be reckoned with in the sector.  The organisation features in Buffett’s portfolio. It is one of the few companies in the technology sector he has a vested interest in. 

The enterprise offers a cloud platform for other businesses to help them manage and analyse their data. Cloud infrastructure spending grew 37% year-on-year in the last half of 2021, which highlights the opportunity in this market. 

Nearly half of the Fortune 500 uses Snowflake’s services. And since its IPO in September 2020, the company has posted revenue growth rates at more than 100% every quarter. 

Buffett-style growth opportunity

It seems as if the company can continue to register rapid growth rates in the years ahead. Management has projected that the total market for the group could stand somewhere in the region of $81bn.

Over the past 12 months, Snowflake’s revenues totalled just $1bn. Put another way, the business has the potential to grow exponentially over the next five to 10 years. 

Of course, this growth is not guaranteed. The cloud computing market is highly competitive. Google controls around two-thirds of the market, and trying to wrest control away from this internet giant will be difficult. There is no guarantee that Snowflake will manage to expand its market share, especially as other corporations are also trying to grow. 

Nevertheless, as the company develops its offering and expands its footprint, the risk of customers moving away to competitors will only decline. Cloud customers can be sticky as moving data to another service is costly and may potentially lead to data loss. 

The bottom line

Considering its growth potential, I am excited about the outlook for Snowflake. Even though the stock looks expensive right now as the business is still losing money, I think its growth will justify its premium valuation over the next two or three years. 

As such, why I would follow Buffett and buy the stock for my portfolio today as an international growth play. 

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The global investment bank Goldman Sachs asked its clients which stock market is expected to perform the best in 2022. Of the total, 36% believe that European stocks will outperform and 32% believe that it will be the US. Relatively few expect Asia and other emerging markets to outperform by comparison, as per a recent Bloomberg report. 

The fact that European stock markets are expected to be the best performing gives me faith in the UK’s markets in particular. The FTSE 100 index has already done pretty decently in January 2022. And going by recent growth forecasts, I believe that not just the FTSE 100 but the UK’s overall stock markets could continue to do so. Further, the International Monetary Fund (IMF) has just put its forecast for the UK’s economic growth at 4.7% in 2022. This is the fastest among major European economies, save Spain. I think both the mood and the tide is clearly turning towards the region. 

Spirax-Sarco Engineering is a buy on dip

I am anyway invested in UK stocks. And I think I am now even more convinced of buying more FTSE 100 stocks. I have had more than a few on my wish-list for a while now. One of them is the priciest stock among all index components. I am talking about the engineering biggie Spirax-Sarco Engineering, which has a current share price of £125. It is also pretty pricey in relative terms, with a price-to-earnings (P/E) ratio of 45 times. However, the stock has seen a fair bit of correction in the past few months. It is now at levels not seen since mid-2021. With its robust financial performance, optimistic forecasts, and long-term growth in share price, I think this is one for me to buy and hold for 10 years or more. This is true even if I have to deal with more near-term stock price correction. 

Segro could be a stock market outperformer

Another stock I have long liked is the FTSE 100 warehousing real estate investment trust (REIT) Segro. Like many other stocks that made big gains during the pandemic, it too is going through a correction right now. And it might just have dipped enough for me to step in and buy it going by its long-term prospects. I am a big believer in the potential of e-commerce. And after the pandemic it has become amply clear how massive the opportunity could be. Segro provides essential storage solutions, which should stay in demand. Besides that, it has performed quite well over the years as well. 

Smurfit Kappa Group is a good e-commerce investment

Finally, I also like the FTSE 100 packaging provider Smurfit-Kappa Group, which is also a long-term investment with its focus on e-commerce solutions. The company has raised some concerns about rising inflation and its share price has also dipped quite a bit in recent months. But still, from a 10-year perspective, I think there is much scope to make capital gains with this stock. It helps that it has a history of strong financial health too. 

Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.